Cooperatives: Clarified Corporate Tax and VAT Liabilities on Dues and Rental Income

• After the cooperative’s type change, both membership dues (aidat) and rental income are subject to Corporate Tax (KVK) and Value Added Tax (KDV).
• Dues collected for general expenses are considered part of corporate income and are subject to KDV if the cooperative is a KVK taxpayer.
• Rental income from properties owned by the cooperative is directly subject to KDV and KVK withholding (20%).
• Exemptions from KDV for dues only apply if the cooperative is not a KVK taxpayer, which is not the case here.
• Compliance with exemption conditions and proper tax procedures must follow Ministry of Finance regulations and relevant tax laws.

Source: alomaliye.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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